drop in mortgage defaults, an increase in new financing of durable consumption (auto purchases) of more than 10% in … relative terms, and an overall improvement in household credit standing. New financing of durable consumption by borrowers with … deleveraging response that can significantly restrict the ability of monetary policy to stimulate these households' consumption …

an increase in output and consumption. Financial fragility builds up over time as information about counterparties decays … incentives to produce information, asymmetric information becomes a threat and there is a decline in output and consumption. A …